Top key predictions for Canada’s programmatic advertising in 2015
2014 has been a really interesting year, and looking back I feel as excited as any advertising aficionado that sees the imminence of the transformation that is about to happen. This makes me think that 2015 can only get better.
As change is hitting different sides of the programmatic advertising ecosystem, mobile, data, pre-roll video and in-stream audio are taking new turns.
Here are my key predictions for 2015:
Programmatic mobile advertising
Programmatic mobile advertising will continue to grow, but advertisers and marketers will become more and more precise in proving the value of this channel. Conversations will move beyond the CTR as a performance benchmark, and the holy grail of any retailer, the store visits, will become the new currency. Using technology and smart mobile real-time targeting, advertisers will be able to measure store visits lifts related to mobile advertising campaigns. A recent study shows that 1 in 10 mobile ad impressions in retail leads to a store visit.
Data will change the game for many publishers, as they will see the new revenue coming from this gold mine. More and more advertisers are moving dollars to programmatic using data to reach the right audience. The need to take ownership of their data, the learning and the insights that can be gathered from dicing and slicing user behaviour across online properties, will elevate the way they interact with their clients. eMarketer signals audience extension has gained popularity among publishers and DMP usage has increased.
Video has seen double digits growth in Canada and will probably reach $360M by 2015 (eMarketer Source). There is still a big gap between user beahviour and the content they can access online. 75% of the Canadian online audience is watching video content on the web. Rogers Game Centre Live, that allows users to stream sporting events on any device, is starting to fill this gap between the user and the publisher content. As 88% of video content is consumed on YouTube, having YAHOO and AOL taping into that game is great news. For programmatic pre-roll, 2015 will be about Deal Id and Private Exchanges in Canada.
And finally, probably one of the most exciting news is the transformation that is about to happen in audio advertising. This is the channel that remains clustered and siloed, and scaling revenue is only possible if the whole industry transforms. Digital audio advertising sits at $700M, which represents approximately 5% of the entire audio advertising spend for US and Canada. This year, two major events made me think that within the next couple of years, we will see triple-digit growth in in-stream audio: Spotify entered the Canadian market, and IAB released the digital audio advertising standard DAAST.
If you are fortunate enough to work for a company that gives you the opportunity to participate in the transformation of this industry, then next year is going to be a really good one.